Despite challenges from tariff tensions and muted global demand, IT major Tata Consultancy Services keeps hiring momentum strong but remains cautious on pay raises.
Mumbai: Tata Consultancy Services (TCS), India’s largest IT services firm, has announced plans to recruit 42,000 freshers in the financial year 2025–26, offering a major boost to campus placement prospects across the country. However, the optimism on hiring comes with a caveat—no clarity yet on salary hikes, as the company navigates a challenging global environment influenced by trade uncertainties, US policy shifts, and a sluggish demand cycle.
TCS Chief Human Resources Officer Milind Lakkad confirmed the hiring intent while presenting the company’s fourth-quarter results, stating, “We hired 42,000 trainees in FY25, and we expect a similar or slightly higher number in FY26.” The total employee count at the end of FY25 stood at 6,07,979, with a net addition of 625 employees in the last quarter.
However, Lakkad also said the decision on salary hikes has been deferred, citing ongoing volatility. “We will take a call during the year, depending on how the business environment evolves,” he added.
Salary Hike on Hold: A Reflection of the Times
The delay in salary revision reflects the cautious mood prevailing across global IT firms. With discretionary spending under pressure and project decisions slowing down, many tech companies are tightening their belts. Tariff disruptions, particularly those stemming from the US and other developed economies, have compounded the problem, stalling several client engagements and delaying execution timelines.
Focus on Future Skills and Global Talent
TCS emphasized that while campus hiring remains strategic, it is also scouting for talent in niche and emerging technologies across global markets. “Net hiring will depend on the business outlook and specific skill demands,” Lakkad said.
Notably, the company dismissed fears of AI replacing jobs, instead highlighting that artificial intelligence will create new roles. “AI-related projects will require more talent, not less,” Lakkad stated, countering the narrative that automation leads to job loss.
Attrition Up Slightly, But Long-Term Retention Strong
TCS reported a modest uptick in attrition, with the rate rising to 13.3% in Q4 from 13% in the previous quarter. Still, the company highlighted a year-on-year improvement of 130 basis points, signaling improved long-term retention.
Cautious Optimism for 2025
The fourth-quarter results met market expectations, but the company acknowledged that tariff conflicts and geopolitical tensions are weighing on demand. “We’re seeing delays in project starts due to protectionist policies and uncertainties in global trade,” TCS said in its statement. However, it expressed hope that calendar year 2025 would see a stronger rebound, backed by a solid order pipeline.
Bottom Line:
While the promise of 42,000 fresher jobs is a positive signal in a turbulent IT job market, the company’s reserved stance on salary hikes and the broader economic headwinds reflect the complexities of the current business landscape. For TCS and the broader industry, the way forward lies in strategic hiring, agility in adopting new skills, and navigating global disruptions with prudence.
